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CONNECTING EGX & THE AFRICAN EXCHANGES THROUGHEGX FIX HUB
TABLE OF CONTENT
▪ What is FIX Protocol? ▪ What is a FIX Hub? ▪ EGX Vision regarding Enhancing Cross Border Trading Using its FIX Hub ▪ Benefits of EGX FIX Hub ▪ Benefits for Member Firms Linking to EGX FIX Hub ▪ Benefits for Asset Managers, Buy Side, Linking to EGX FIX Hub ▪ FIX Hub Network ▪ EGX FIX Hub Members ▪ Trading Steps through EGX FIX Hub ▪ System Architecture of EGX FIX Hub ▪ Requirements for the African Exchanges & its clients to Link to EGX FIX Hub
WHAT IS FIX PROTOCOL?-The Financial Information exchange (“FIX”) Protocol is an electronic
communications protocol initiated in 1992 for international real-time
exchange of information related to the securities transactions and
markets.
-FIX is also considered as a series of messaging specifications for the
real time electronic exchange of securities transaction data.
-FIX is widely used by both the buy side (institutions) as well as the sell
side
WHAT IS A FIX HUB?
-A FIX Hub helps to reduce the complexity of having many bilateral
links between FIX engines by providing a central FIX hub to which many
parties connect with their own FIX engines. The hub is then able to
route the messages to the appropriate party. Thus, every party only
requires a single connection to the hub instead of one connection per
party it needs to communicate with.
.
EGX VISION REGARDING ENHANCING CROSS BORDER TRADING
- EGX believes in the importance of having global exchanges
cooperate and leverage their networks, key assets and the
benefits of their geography in order to increase cross border
trading.
- EGX is focusing on developing partnerships with regional and
global exchange players to expand our respective businesses.
This could be achieved with EGX FIX HUB, which provides
connectivity/linkage services for the benefit of Egyptian and
international brokers and opens new revenue streams and
opportunities for both member firms and investors.
- EGX believes strongly that the way forward to enhance cross
border trading among various markets for the benefits of
member firms and investors could be through linking EGX FIX
HUB to other Exchanges’ FIX Hubs.
- In January 2014, EGX succeeded in developing its own in-
house fix hub solution developed by its competent IT team.
- EGX FIX HUB enables connectivity and order routing between
local brokers’ systems and international buy and sell side
systems. EGX FIX HUB is currently linked to FIDESSA network
and there are also three local member firms linked to it i.e. CI
Capital, Beltone Financial and HSBC Egypt.
- This solution allows regional as well as global access to EGX
products and the provisioning of other exchanges’ products
to market participants in Egypt. Furthermore, the setup of a
communications system between EGX FIX Hub and other
exchanges’ FIX Hubs will facilitate the routing of orders
between participating brokers located in Egypt and brokers
located in other markets
BENEFITS OF EGX FIX HUB
- Simple and cost-effective means for linking or
connecting many trading partners i.e. buy and sell
side, in Egypt and other regional and international
markets.
- Provide new services to the Egyptian member
firms whereby they can access new markets /
exchanges / products.
- Provide for the first time a new service to the asset
managers, buy side, in Egypt whereby they link to
other asset managers or member firms through
only one connection via EGX FIX Hub.
- Provide new products to our investors by allowing
them to invest in other markets in a trusted and
secure method.
- Making the trading process more flexible,
automated, reliable and less subject to errors
- EGX FIX Hub will connect users to their choice of
liquidity pools
- FIX Hub is a flexible open architecture, which can
be configured and customized to users’ needs.
- EGX FIX Hub maintains confidentiality of messages
and communicates them at high speed.
- Minimizing user errors and thus providing strong
reliability.
- Increase liquidity in the Egyptian market.
- Reducing overall technology costs for EGX clients
i.e. member firms and asset managers. Increasing
the revenues for our market participants i.e.
member firms and asset managers
BENEFITING PARTIES
Benefits for Member Firms—- Operate in a more technologically savvy environment.
- Minimize previous human errors due to using traditional order
placement methods e.g. phones, faxes
- Place their orders to multiple exchanges without much trouble
in an easy fashion.
- Reduce greatly communications costs.
- Access to cross-listed stocks/GDRs in other markets
- Transact in an electronic, transparent, cost-efficient and timely
manner.
- Increase the number of customers in Egypt and other markets.
- Very competitive fees to link to EGX FIX Hub service.
- Increase their revenues.
Benefits for Asset Managers / Buy-Side—- Allow buy-side to be linked to the sell-side in Egypt via EGX FIX
hub.
- Minimize previous human errors via using traditional order
placement methods e.g. phones, faxes.
- Very competitive fees to link to EGX FIX hub service.
- Link to other market participants in an electronic, transparent,
cost-efficient and timely manner.
- Reduce communication costs
- Increase their revenues.
EGX FIX HUB MEMBERS
There are 100+ member firms in Egypt that are FIX-enabled.
They could be connected to EGX FIX Hub; once they obtain the necessary technical
approvals.
The following market participants and firms are connected to EGX FIX HUB:
- Sell Side:
- CI Capita
- Beltone Financial
- HSBC Securities
- Order Routing Networks:
- Fidessa
- 2900 Buy Side
- 700 Sell Side
- 175 Stock Markets
- Markets:
- EGX is currently promoting its FIX HUB project among local and foreign market
participants and exchanges.
SYSTEM ARCHITECTURE OF EGX FIX HUB
EGX FIX Hub will allow its customers:
- To select a designated broker.
- To select a designated market.
- To enter, modify and delete an order.
- To receive order status messages.
- To receive execution reports.
- To receive market/security status.
Thank You!
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